Monday, 29 June 2009

No more energy...



Looking to the bullish percent index of the energy sector (as one of the sectors of the S&P500) we observe that all bullishness has evaporated in a week or so. Now, this sector was one of the strongholds of the rally and is now sinking form overbought to oversold.
Not time to buy, yet, but worthwhile to follow, this fellow.




Another observation: if we take a peek to the Russell 2000 than it becomes clear that the last 8 weeks where a waste of time for the big indices while individual names tanked already. A stealth correction is going on. This can result in a correction of the big indices later as the big names can not hold up the whole weight with just some happy few.



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